Secrets of Power Negotiating

Negotiation is not about winning or losing; it’s about finding a way to get what you want while leaving the other side feeling like they’ve won too.

1. Start High to Shape the Negotiation Range

Negotiation begins with setting the stage, and your first move is critical. Roger Dawson emphasizes the importance of asking for more than you expect to receive. This tactic creates a favorable negotiating range and gives you room to maneuver. By starting high, you can ensure that even if the other party pushes back, you’ll likely land closer to your target.

For example, if you’re buying a car and your target price is $15,000, you might start with an offer of $12,000. This positions your target as the midpoint of the negotiation range. The seller, starting at $18,000, will likely counter closer to your desired price. This strategy works because most negotiations end with both parties meeting somewhere in the middle.

Examples

• A homebuyer offers $140,000 for a house listed at $200,000, aiming to settle at $170,000.
• A seller prices a product at $2.00 per unit, knowing they’ll accept $1.75 but starting high to create room for concessions.
• A job seeker negotiates a $70,000 salary by initially asking for $80,000.

2. Flinch to Signal Disapproval

Body language can be as powerful as words in negotiation. Dawson introduces the flinch technique, where you visibly react to an offer to show it’s unacceptable. This nonverbal cue can make the other party reconsider their position, even if their offer is reasonable.

For instance, if someone offers $10,000 for a used car, you might flinch as though the price is outrageous. This reaction can prompt them to lower their price without you even making a counteroffer. The flinch works because it taps into the other party’s fear of losing the deal or appearing unreasonable.

Examples

• A buyer flinches at a $5,000 price tag for a piece of furniture, prompting the seller to immediately offer a discount.
• A salesperson reacts with surprise when a client requests free shipping, leading the client to reconsider their demand.
• A negotiator flinches at a proposed timeline, encouraging the other side to offer more flexibility.

3. Use the Vise Technique to Shift Pressure

The vise technique is a simple but effective verbal strategy. When the other party makes an offer, respond with, “You’ll have to do better than that.” This phrase shifts the pressure back to them, forcing them to improve their offer without you revealing your position.

For example, if a contractor quotes $20,000 for a renovation, you can use the vise technique to encourage them to lower their price. If they ask how much better they need to do, you can then anchor the negotiation by suggesting a lower figure. This tactic works well because it keeps the ball in their court.

Examples

• A buyer uses the vise technique to negotiate a lower price on a car, prompting the seller to drop their asking price.
• A client tells a freelancer, “You’ll have to do better than that,” leading the freelancer to offer additional services at no extra cost.
• A tenant uses the phrase to negotiate a rent reduction, encouraging the landlord to propose a compromise.

4. Never Accept the First Offer

Accepting the first offer might seem like a win, but it often leaves money or value on the table. Dawson advises against this, as it can lead to regret and missed opportunities. Even if the first offer seems fair, countering can often yield better results.

For instance, if a seller offers a car for $5,000 and you immediately accept, you might later wonder if they would have gone lower. By countering with $4,000, you create room for negotiation and might settle at $4,500. This approach ensures you maximize the value of the deal.

Examples

• A buyer counters a $3,000 offer for a used laptop, eventually settling at $2,500.
• A job candidate negotiates a higher salary after initially being offered $50,000.
• A homeowner rejects the first offer on their property, leading to a bidding war that increases the final sale price.

5. Taper Concessions to Signal Limits

In the middle phase of negotiation, it’s important to taper your concessions. Start with larger concessions and gradually make smaller ones. This signals to the other party that you’re nearing your limit, making them less likely to push for more.

For example, if you’re selling a house, you might reduce the price by $10,000 initially, then by $5,000, and finally by $1,000. This creates the impression that you’re running out of room to negotiate, encouraging the buyer to accept your terms.

Examples

• A seller reduces the price of a car in decreasing increments, signaling they’ve reached their bottom line.
• A buyer increases their offer on a property in smaller steps, showing they’re nearing their maximum budget.
• A negotiator tapers concessions on delivery timelines, encouraging the other side to compromise.

6. Always Ask for a Trade-Off

Dawson stresses the importance of never giving something away for free. If the other party asks for a concession, always request something in return. This not only maintains balance but also discourages them from making excessive demands.

For instance, if a buyer asks for free delivery, you might agree but request a faster payment schedule in return. This approach ensures that both sides feel they’re gaining something, making the negotiation more balanced.

Examples

• A seller agrees to a discount but asks for a larger order in return.
• A landlord offers a rent reduction in exchange for a longer lease term.
• A freelancer agrees to a tighter deadline but requests higher pay.

7. Invoke a Higher Authority

When faced with a difficult request, invoking a higher authority can buy you time and deflect pressure. By claiming you need approval from someone else, you can avoid making immediate concessions and position yourself as an ally rather than an adversary.

For example, a salesperson might tell a client, “I’ll need to check with my manager about that discount.” This creates a buffer and allows you to maintain goodwill while holding firm on your position.

Examples

• A negotiator defers to “corporate” when asked for a major concession.
• A buyer claims they need their spouse’s approval before agreeing to a deal.
• A seller cites company policy to avoid granting a discount.

8. Be Willing to Walk Away

One of the most powerful tools in negotiation is the willingness to walk away. This signals to the other party that you don’t need the deal, giving you leverage. If they sense you’re desperate, they’re more likely to push for concessions.

For instance, if a buyer insists on a price that’s too low, you might say, “I’m sorry, but I can’t go that low. I have other buyers interested.” This can prompt them to reconsider and make a better offer.

Examples

• A job candidate walks away from a low offer, prompting the employer to improve their terms.
• A seller refuses to budge on price, leading the buyer to meet their asking price.
• A negotiator mentions alternative options to strengthen their position.

9. Sweeten the Deal at the End

To close a negotiation on a positive note, Dawson recommends offering a small freebie. This final gesture can make the other party feel like they’ve won, even if the overall deal favors you.

For example, if you’re selling a car, you might throw in a set of floor mats. This small concession can leave the buyer feeling satisfied and more likely to agree to the deal.

Examples

• A seller includes a free warranty extension to finalize a deal.
• A landlord offers to repaint an apartment to secure a lease agreement.
• A retailer throws in free accessories to close a sale.

Takeaways

1. Always start negotiations by asking for more than you expect to receive. This creates room to maneuver and increases your chances of meeting your target.
2. Use body language and verbal cues, like flinching or the vise technique, to influence the other party without revealing your position.
3. Be prepared to walk away from a deal if it doesn’t meet your terms. This shows strength and can prompt the other side to reconsider.